Fox Business contributor praises Larry Kudlow and Donald Trump for calming the markets
Phil Flynn: “Larry Kudlow's done a great job, and I think the president's done a great job to try to calm the market during these volatile times”
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From the March 9, 2020, edition of Fox Business' Mornings with Maria
DAGEN MCDOWELL (FOX BUSINESS ANCHOR): Many people are also expecting the Federal Reserve to try and inject liquidity in this market, not by cutting rates but by maybe selling Treasurys because there is such demand for Treasurys, and buying things like mortgages, because they are allowed under the law to be able to do that, watch for that. It could happen in a matter of days.
MARIA BARTIROMO (MORNINGS WITH MARIA ANCHOR): Yeah, and we have started opening the balance sheet again and buying, in the last couple months Phil. If they are going to keep this up, does the market see this as a positive or does the market see this as emergency emergency action, that perhaps is a lot worse than people expect?
PHIL FLYNN (FOX BUSINESS CONTRIBUTOR): Well I think right now, they'll take it as somewhat as a positive. You know, it's like putting a band-aid on an open wound right? Right now, you're gushing blood, so if they do nothing, it's probably going to get worse. But you're right, you know, it could create even more fear, you know, and freeze up lending more. We saw that back in 2008, you know, and you know, the key thing here I think -- and I think Larry Kudlow's done a great job, and I think the president's done a great job to try to calm the market during these volatile times -- because we are going to get through this right? I mean, you know, the coronavirus thing is going to end, I think there's a lot of overreactions in this market.
I think, that's why I am so upset with the OPEC-plus cartel. The timing of their little personality match and power play in the Middle East, I mean, it's hurting rest of the world's global economy. Listen, oil prices when they plunge like this, it has a tendency to bring, you know, or take away confidence from other sectors. And we saw that on the subprime crisis, you know, once the subprime went bad, you know, other sectors started to follow. We wanted to put an end to that. So I do think the central banks and the Trump administration is going to step up and I think they're going to need to just to get us through this panic.